British Airways Owner Reports $1.8 Billion Loss, Hopes To Resume Flights By July

TOPLINE

British Airways parent company IAG recorded a $1.8 billion (£1.5 billion) loss in the first three months of the year, as widespread travel restrictions caused by coronavirus prompted the group to slash 94% of its flights.

KEY FACTS

Crucial comment

Walsh said: “March’s performance was severely affected by government travel restrictions due to the rapid spread of Covid-19 which significantly impacted demand. Most of the loss made in the quarter occurred in the last two weeks of March.

“We do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest.”

Additional info

IAG’s return to the skies in July depends on how far travel restrictions are lifted. The U.K. is set to outline its plans to ease lockdown on Sunday, while some of the hardest-hit European hotspots, including Spain and Italy, are beginning to lift the most stringent restrictions from this month. Following the footsteps of some U.S. airlines, Walsh indicated that he supports the use of mandatory face coverings, and temperature checks on departure and arrival.

IAG has also secured £300 million ($370 billion) in support from a U.K. government-backed scheme for major British businesses hit by the coronavirus to borrow short-term loans. The group also had 10 billion euros in cash at the end of April.

Big number

The International Air Transport Association estimates that globally, airlines will lose $314 billion in passenger revenues this year.

Further reading

Ryanair, Europe’s Biggest Budget Airline, Is Cutting 3,000 Jobs To Survive The Coronavirus Crisis (Forbes)

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